Chapter 10 - Pay-for-Performance Plans

25. (p. 333) When a firm is _____ on business risk and outcomes are _____, corporate

performance is higher without any incentive plans. 

A. 

high, well defined

B

.

 high, uncertain

C. 

low, well defined

D. 

low, uncertain

Difficulty: Difficult

 

26. (p. 348) All of the following are human resource capabilities performance indicators used for

group incentive plans except: 

A. 

employee satisfaction.

B. 

total recruitment costs.

C. 

promotability index.

D

.

 accuracy/error rates.

Difficulty: Medium

 

27. (p. 349) _____ have (has) advantages of having minimal impact on the company's financial

statements. 

A. 

Cash profit sharing

B. 

A balanced scorecard

C

.

 Stock options

D. 

Deferred profit sharing

Difficulty: Medium

 

28. (p. 349) _____ offer(s) a reward pool based upon achieving performance targets and

communicates organizational priorities. 

A

.

 The balanced scorecard

B. 

Stock options

C. 

Deferred profit sharing

D. 

Cash profit sharing

Difficulty: Medium

 

10-7

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 10 - Pay-for-Performance Plans

29. (p. 349) _____ has the disadvantage that employees may be required to spend money to

obtain the incentive. 

A. 

Cash profit sharing

B. 

A balanced scorecard

C

.

 Stock options

D. 

Deferred profit sharing

Difficulty: Medium

 

30. (p. 349) The purpose of this variable pay plan is to foster a "one for all" culture and to

educate employees about business. 

A. 

Team incentives

B

.

 Cash profit sharing

C. 

Balanced score card

D. 

Stock options

Difficulty: Medium

 

31. (p. 350) The best variable pay plan for employees when company financial performance is

poor is _____. 

A. 

profit sharing

B. 

a balanced scorecard

C. 

stock ownership

D

.

 gain sharing

Difficulty: Medium

 

32. (p. 350) The variable pay plan with the highest instrumentality is _____. 

A

.

 gain sharing

B. 

team incentives

C. 

a balanced scorecard

D. 

stock ownership

Difficulty: Medium

 

10-8

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.